On Wednesday, Citi updated its stance on NVIDIA Corporation (NASDAQ:NVDA), significantly increasing the stock's price target to $1,030 from the previous $820 mark. The firm continues to recommend a Buy rating for the tech company's shares.
The revision follows insights gathered from the initial two days of the GPU Technology Conference (GTC), where NVIDIA's capabilities in integrating computing, networking, and software technologies were on full display.
The highlight was NVIDIA's new NVLink Switch (NYSE:SWCH) technology, which is central to the Blackwell Platform's performance. According to the analyst, this technology enables the Blackwell Platform to outperform the prior H100 model by 30 times on inference workloads.
Citi has adjusted its expected earnings per share (EPS) for fiscal years 2024 and 2025, increasing them by 7% and 21% respectively. This change is based on the Blackwell platform's pricing, which has exceeded initial estimates, now ranging between $30,000 to $40,000 compared to the previously assumed $20,000 to $30,000.
The new price target of $1,030 is derived from a consistent 35 times price-to-earnings (PE) ratio. Citi's endorsement of the Buy rating for NVIDIA reflects a positive outlook on the company's future performance, driven by the innovative Blackwell platform and its pricing potential.
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